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12 Sept 2000

Comprehensive risk management programme
- the first for the City of Espoo

The City of Espoo has set about creating a comprehensive risk management programme. In terms of scope, the project is unique in Finland's entire municipal sector. Similar programmes have long been used to good effect in industry and business. The aim of the project is to introduce the application of modern risk management methods to every area of the city's activities. The comprehensive risk management programme covers different types of risks and supports the city's decision-making.

New legislation requires Finland's municipalities to take effective precautions against many different kinds of risks. For instance, municipal safety, solvency, the operations of municipal enterprises, IT functionality, service quality, staff competence and wellbeing, recruiting and real estate all carry their own risks. The first task of the project is to analyse the different risks. The risk management programme is partly linked to the formulation of a safety strategy that is currently underway in Espoo.

The purpose of risk management is to minimise the losses incurred by the city from identified risks, thereby safeguarding the city's economic performance as well as the continuity and quality of its services. In addition, the programme will be used to improve the wellbeing and safety of both the employees and the residents of the city. The city government bears ultimate responsibility for risk management and its supervision.

Pekka Niemi and Arto Kuusisto
Pekka Niemi and Arto Kuusisto

The project is being financed by the City of Espoo and the Finnish Work Environment Fund. Also participating in the project are Pohjola Insurance Company and, as an expert body, VTT Automation. The project will end in May 2001, at which time the City of Espoo's risk management programme is scheduled for completion.

Further information:
City of Espoo, Risk Management Manager Pekka Niemi, tel. + 358 50 301 9491 and VTT Automation, Senior Research Scientist Arto Kuusisto, tel. +358 40 721 7186 or by email:

Feel free to use all news. Photographs copyright Kalle Heiska.
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